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WASHINGTON--(BUSINESS WIRE)--The Systemic Risk Council, a private sector, volunteer group led by
former Federal Deposit Insurance Corp. chair Sheila Bair, will convene
this month to monitor and encourage regulatory reform of U.S. capital
markets focused on systemic risk. The independent, non-partisan council
was formed by CFA Institute, the global association of investment
professionals that sets the standard for professional excellence and The
Pew Charitable Trusts, an independent nonprofit organization that brings
a rigorous, analytical approach to solving today’s most challenging
problems. The Systemic Risk Council is comprised of a diverse group of
experts in investments, capital markets and securities regulation,
including senior advisor Paul Volcker, former Chair of the Federal
Reserve.

According to Bair, concerns over the slow progress of regulators and
standard-setters prompted the creation of the Systemic Risk Council. The
council will monitor and evaluate the activities of those with the
Congressional mandate to develop and implement Dodd-Frank provisions
related to systemic risk, including the Financial Stability Oversight
Council (FSOC) and the Office of Financial Research.

“The great challenge is to devise a system to identify risks that
threaten market stability before they become a danger to the general
public,” said Sheila Bair, senior advisor to The Pew Charitable Trusts
and chair of the Systemic Risk Council. “As evidenced by the 2008 crisis
and even recent headlines, we need a more effective and efficient
early-warning system to detect issues that jeopardize the functioning of
U.S. financial markets before they disrupt credit flows to the real
economy. And two of the most critical tasks are how to impose greater
market discipline on excess risk taking and effectively end the doctrine
too-big-to-fail.”

The Systemic Risk Council expects to evaluate and provide commentary on
the existing efforts of regulators to design and implement a credible
and globally-coordinated systemic risk oversight function. Council
activities will include reports and commentary to the FSOC and its
member regulators as they adopt regulations to prevent the type of
severe financial disruptions which occurred in 2008 when global
financial markets began to unravel.

“Despite the magnitude of the financial crisis, prospects for major
reform of regulatory systems are inadequate and vague,” said John
Rogers, CFA, president and CEO of CFA Institute and Systemic Risk
Council member. “This council will serve as an essential sounding board
for systemic risk reforms focused on strong investor protection, and
offer a critical voice to promote the enforcement of regulations,
financial disclosure and transparency.”

“This new council is composed of experts with a thorough understanding
of the issues, and we are pleased to support their efforts to find
nonpartisan and independent recommendations,” said Rebecca W. Rimel,
president and CEO of The Pew Charitable Trusts. “The reforms to our
nation’s financial system enacted by Congress and signed by the
president in 2010 were an important first step. The task now is to
implement these reforms, especially those related to systemic risk.”

The council plans to issue a call to action on June 18, at The Pew
Charitable Trusts in Washington, D.C., detailing the objectives and
future plans for the Systemic Risk Council.

CFA Institute is the global association of investment professionals that
sets the standard for professional excellence and credentials. The
organization is a champion for ethical behavior in investment markets
and a respected source of knowledge in the global financial community.
The end goal: to create an environment where investors’ interests come
first, markets function at their best, and economies grow. CFA Institute
has more than 110,000 members in 139 countries and territories,
including 101,000 Chartered Financial Analyst charterholders, and 136
member societies. For more information, visit www.cfainstitute.org.

About The Pew Charitable Trusts

The Pew Charitable Trusts, an independent nonprofit, is the sole
beneficiary of seven individual charitable funds established between
1948 and 1979 by two sons and two daughters of Sun Oil Company founder
Joseph N. Pew and his wife, Mary Anderson Pew. The Pew Charitable Trusts
is driven by the power of knowledge to solve today’s most challenging
problems. Pew applies a rigorous, analytical approach to improve public
policy, inform the public, and stimulate civic life. For more
information, visit www.pewtrusts.org.